The value and number of checks submitted to local banks declined during the first half of 2026, with total transactions reaching 11.989 billion dinars, according to data from the Central Bank of Kuwait.
The number of checks presented to banks fell by 10.7 percent, or about 210,000 checks, to reach 1.741 million checks during the January-June period, compared with 1.951 million checks in the same period last year.
Central Bank data showed that the total value of submitted checks decreased by 7 percent, declining from 12.9 billion dinars in the first half of 2025. The number of customers using checks also dropped by 16.4 percent to 45,960 customers, a decline of around 9,060 users.
Despite the overall decline in check activity, returned checks due to insufficient funds increased during the period. The number of bounced checks rose by 11.2 percent to 2,394 checks, compared with 2,152 checks in the first half of last year.
The value of returned checks recorded a sharper increase, climbing by 114 percent to 48.8 million dinars, compared with 22.8 million dinars previously. These checks involved 1,589 customers, an increase of about 168 customers.
The number of bank accounts closed due to bounced checks also increased by 18.9 percent to 390 accounts, compared with 328 accounts in the same period last year. The closures followed the return of 1,158 checks, up 14.7 percent year-on-year.
The value of checks linked to closed accounts, however, declined by 33.6 percent to 8.1 million dinars, compared with 12.2 million dinars previously. The number of customers affected by account closures rose to 371, an increase of 17.4 percent.
Kuwaiti banks continue to implement strict measures to prevent misuse of checks, including practices aimed at delaying payments or avoiding financial obligations.
Banks are applying Central Bank of Kuwait regulations by restricting and closing accounts involved in repeated check-related violations.
The decline in overall check usage reflects changing payment habits and the growing adoption of electronic payment methods, while the rise in bounced checks highlights continued monitoring by banks to maintain financial discipline.
